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The residential market across NCR recorded subdued activity in the first half of 2013 as compared to the same period previous year, according to a report.
The buyer interest remained largely focused upon cost effective suburban markets, with prime areas witnessing no new launches during the first half of 2013, the report by CBRE South Asia Pvt Ltd said.
The capital values across most micro-markets of Delhi also witnessed a decline owing to restrained demand levels, besides a cautious buyer sentiment. Besides, developers also delayed the launch of new projects, as the focus was on clearing existing inventory.
Anshuman Magazine, Chairman and Managing Director of CBRE, South Asia Pvt. Ltd. said, “The NCR’s residential sector has witnessed lower levels of activity primarily due to inflated prices. Going forward, this will continue to dampen demand levels, particularly in the premium markets of Delhi and Gurgaon. Though the market is expected to witness developer focus on clearing existing inventory levels, launches by prominent developers are expected during the second half of the year – primarily in Gurgaon. The RBI’s latest ruling on disbursement of loans on special schemes, however, will further impact the residential market here.”
The report also said developer focus remained largely upon luxury housing, attracted by the higher returns offered by this niche segment.
Subdued demand resulted in correction in capital as well as rental values across most micro-markets of Delhi. In terms of leased assets, locations such as South Extension and Greater Kailash I and II witnessed a rental decline of about 12-13% during the review period. Micro markets such as Panchsheel Park, Westend and VasantVihar observed a rental decline of about 9-11% during H1 2013.
